What Comes After Austerity?

4/29/2013 7:04AM

As the antiausterity debate in the euro zone heats up, Heard on the Street’s Simon Nixon argues that governments should use the opportunity to introduce more structural reforms rather than use it as an excuse to stop reforms.

This transcript has been automatically generated and may not be 100% accurate.

I ... the the ... see all y'all ... he was to use that is facing ... as many of its major holidays ... that deep into recession ... Simon Nixon the that the consequences of us that it isn't just inside the IMF bonds stay in the Italian Prime Minister ... even ahead of the ECB today that the European Commission ... aam is this The Barroso has said ... enough of us that he ... is out the window ... what gets us to look ... with triple digit mean basically whether they actually talking about ... are you ... going to affect the fiscal stimulus ... whether talking about ... adding goals in all the new fiscal measures to reduce deficits ... or whether the Semitic meals also things essential search about that ... but the one to be that the Sea dogs ... that are still stuck on the scene of a set amount of academic dumb backing ... because we had this paper us just to queue up debts ... of ... banks and GDP ill and could honestly and then due to the polls to fuel economy ... yes I mean is this just for this debate is that ... of the academic underpinning of ... all bill Sir C policy choices being on the month ... but I think that the risk of the points by more than post is that ... the euro signs austerity ... program was never driven by academic theory it was ushered in by market assessing apps ... the painters multi axis you're on to its national aims to fondle deficit and ... then you have no option but to ... try and reduce so there is such ... a big plus for the second of the run on Google thing is that ... doing so do it with these regression analysis can show you any confusion you will want to be what the what what's clear is that ... that will look out for the Vatican and shows that ... they are very high go with that is associated ... with Bloom ... with lower growth there will salsa reasons why that can be this debate among academics of our calls out to see whether its ... high growth might tip of course but truthfully with of course I get ... I think that it's more ... of the dash to the point of Utica the euro cents a day ... or so so that's all ... take to be helpful ... um you because they want with the circus to the situations of how to get out to secure the case no one really acts and those of you know that the U S they have you know ... that that that GDP the blow ... of her five ... one with a ninety ... eight to pack a mean amazing enough that in the tune of forty five percent of says we ought to invite us to say ... should they be spending ... also that's because the ... kids on the second point I'd try making my agenda columns of realizing that actually ... the emotional health ... of to be helpful it is to try and look at these ... cities ... of multi country analyses the conduct of the mobile source of difference ... very different situations in the depths of her coat and purse to always ... What's importance to join in some situations where copies of Russian crude away off to fight the charges and charges are any lessons were ... okay but the moment does the argument is that okay ... they are these fiscal progress on such programs in the destinations ... but their economies continue to sink ... arm and the whole thing basically is not working but the only reason because of this debate Simon ... at this stage is the cause of all in cost ... conscious about to fall because they will start ... running the steps of the key thing is that this that ... is the possible note the little oratory costs of Olam in the euro zone because the ECB ... promise to buy the doubled pawns of copies sold by all the Muppets take Last ... as having taken ... a significant sovereign risk off the table for investors ... and simple meals a form across the euro zone ... hasn't traded situation where the sense of ... the act of ... with a sense of urgency rubble searching has gone ... and now ... so the so the question now is ... is is is waltz should ... be doing now to get out of the Lutheran problem with this still that ... okay so what would actually have to mean bass the stock to reforms to make if they're not actually into the oven ... you ... see me boss that too without gets to make it easier for them to use to reforms ... will succeed in its vast amounts of the contents of the Dutch House bid on it because ... I think we what what what one can see is one looks at copies of the Republic from very high ... debt levels will win the that chill performs UPS abt ... and that is yet to deal with it he would spin off of your holdings of your Pinnacle Ms fact ... is the fact that there is a very rigid that is ... that they have been able to ... refinance their economies results of the approach of new growth areas of whether Labor will Capital aura or ... so that is five and briefly had it does that is that the sport ... the debases Stocks open up ... the markets continue so investors continued to ... show confidence by pushing down on costs will ... if the markets all investors the thinking well ... the other piece of study ... that consumption is ... on costs but that didn't stop when ... they are so I send this memo identical my finger with ... your physical stretched an ... essential circuit backlash ... could be useful ... if ... if ... if if it beats to ... a renewed focus on structural reforms because of a statue of Europe needs more than anything else ... so if the mobile or and costs ... of providing safe but it's a cool political space ... for a much richer reform program ... and that's very good ... it can still searching backlash ... actually means that the euro zone was bought off